A company will be able to obtain a quantity discount on component parts for its three products, X₁, X₂ and X₃ if it produces beyond certain limits. To get the X₁ discount it must produce more than 50 X₁'s. It must produce more than 60 X₂'s for the X₂ discount and 70 X₃'s for the X₃ discount. How many binary variables are required in the formulation of this problem? A) 3 B) 6 C) 9 D) 12

Question

Quizplus · Accepted Answer

For each product, only one binary variable is needed to indicate whether the production quantity has exceeded the threshold for obtaining a discount. Therefore, with three products, only three binary variables are required.

A Company Will Be Able to Obtain a Quantity Discount